Blog Post
Berkshire Hathaway Energy to Acquire 25% of Cove Point LNG
Jul 05, 2020
Berkshire Hathaway Energy announced today it has executed an agreement to acquire Dominion Energy’s natural gas transmission and storage business. Berkshire Hathaway Energy will acquire 100% of Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission; and 50% of Iroquois Gas Transmission System.
As part of the deal Berkshire Hathaway Energy will acquire 25% of Cove Point LNG. Cove Point LNG is an export, import and storage facility located on the Chesapeake Bay in Lusby, Maryland. Dominion Energy will continue to own 50% of Cove Point, with Brookfield Asset Management
continuing to own the remaining 25% share. Berkshire Hathaway Energy will operate the Cove Point facility once the transaction closes. The Cove Point facility has a nameplate capacity of 5.25 mtpa of LNG.
The assets to be acquired by Berkshire Hathaway Energy include over 7,700 miles of natural gas transmission lines, with approximately 20.8 billion cubic feet per day of transportation capacity and 900 billion cubic feet of operated natural gas storage with 364 billion cubic feet of working storage capacity. The transaction is valued at $9.7 billion, including the assumption of $5.7 billion of existing Dominion Energy debt.
Warren Buffett, chairman of Berkshire Hathaway, said: "We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business."
The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2020.
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